Rose Petroleum PLC Completion of SDA Mill disposal (0655Y)
December 01 2017 - 2:01AM
UK Regulatory
TIDMROSE
RNS Number : 0655Y
Rose Petroleum PLC
01 December 2017
Prior to publication, the information contained within this
announcement was deemed by the Company to constitute inside
information as stipulated under the Market Abuse Regulations (EU)
No. 596/2014 ("MAR"). With the publication of this announcement,
this information is now considered to be in the public domain.
1 December 2017
Rose Petroleum plc
("Rose", the "Company" or the "Group")
Completion of SDA Mill disposal
Rose (AIM: ROSE), the AIM quoted natural resources business, is
pleased to announce that on 30 November 2017 it completed the
disposal of the Company's mineral processing mill operation in San
Dieguito de Arriba, Mexico and its associated assets, licences and
agreements (together, the "SDA Mill") to Magellan Gold Corporation
(OTCQB: MAGE) ("Magellan").
The total consideration for the sale of the SDA Mill was US$1.5
million. US$1.0 million of the consideration was payable in cash,
of which US$100,000 was received on 1 June 2017. Rose has now
received the closing cash proceeds from Magellan of US$872,418
which is made up of the US$900,000 cash proceeds payable for the
SDA Mill plus various credits owed by Magellan to Rose in respect
of the ongoing SDA Mill operations, less US$50,000 which will be
retained by Magellan pending any claims or liabilities that may
arise in respect of Rose's tenure of the SDA Mill. Absent any
claims, the retained proceeds will be released to Rose on 10 March
2018, being 100 days from the sale completion date.
In addition to the cash consideration, the balance US$500,000 of
the total consideration will be received in 14,200,834 restricted
common stock (shares) in Magellan. This number of shares is based
on the volume weighted average price per share of Magellan's stock
for the 30 calendar days preceding the 30 November 2017. The
consideration shares represent approximately 15 per cent. of
Magellan's enlarged share capital. Under SEC regulations, the
Magellan stock will not be freely tradeable for a period of twelve
months post issue. In order to facilitate the disposal of these
shares, Rose has agreed to grant Magellan the option to acquire
these shares for US$500,000 cash within the six-month period
following the completion of the disposal, or to acquire them for
US$550,000 cash in the period from six months following the
completion of the disposal to the expiry of the option. This option
expires one year and five business days after the completion date.
If the option is not exercised during the option period, the shares
will be freely tradeable and with no restrictions.
Full details of the terms of the disposal and the rationale
behind it were announced by the Company on 1 September 2017. The
disposal was approved by Rose's shareholders at the Company's
General Meeting that was held on 18 September 2017.
Matthew Idiens, CEO commented "I am delighted that we have now
completed the disposal of the SDA Mill. I would like to thank
Magellan for their commitment to this process and we wish them the
very best of luck with their Mexican endeavours. In Rose's capacity
as a significant shareholder in Magellan, we look forward to
watching how their operations progress.
"I'd also like to thank all our employees at the SDA Mill for
their hard work and support over many years, and we wish them the
best of luck in the future.
"We now look forward to focusing our operational and strategic
efforts on our oil and gas assets in the Paradox Basin, U.S.A and
we expect to be in a position to update the market shortly on
progress."
Enquiries:
Rose Petroleum Tel: +44 (0)
plc 20 7225 4595
Matthew Idiens (CEO) Tel: +44 (0)
Chris Eadie (CFO) 20 7225 4599
Jeremy Porter / James Allenby Capital Tel: +44 (0)
Reeve / Liz Kirchner Limited 20 3328 5656
Andy Thacker Turner Pope Tel: +44 (0)20
Investments 3621 4120
Media enquiries:
Allerton Communications Tel: +44 (0) 20 3633
1730
Peter Curtain peter.curtain@allertoncomms.co.uk
-------------- ------------------------ -----------------------------------
This information is provided by RNS
The company news service from the London Stock Exchange
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